Utilizing profit target equal to loss limit has some advantages. When everything goes good, strategy will use slight market edge (coming from trend and signal) and utilize it over a long period of time. Once the market conditions become unfavorable, trading will resemble coin toss producing just the commission loss for the trader.

Get MT4 Expert Advisor trading this Forex strategy ↴
Backtest and optimize for any currency pair. Trade multiple instruments simultaneously, day and night.
Trade automatically, without errors and emotions. Save your time and energy.
This forex strategy uses stop loss that equal profit target. Break even function is implemented to avoid situations when good winning trade turns to loser just before hitting TP.
To get that so much needed edge combination of two alligator indicators is used. Both are working with different calculation periods. This helps to identify main and current trend, but also avoid some of the market correction.
We will enter the trade based on CCI high/low price signal. At all times, we wait for CCI signal completion, and enter on candle close.
Strategy was tested on high quality tick data since 2003. 1H chart of EURUS was used in or test. Expert advisor is available at the bottom of this article. System was tested on 1H chart fore more accurate results. However, it can be employed on lower timeframes, with modified setting to work as an aggressive and effective scalper.
Used tools and indicators

Commodity channel index (CCI 21) CCI is used to determine entry signal. We will be looking for indicator to enter overbought/oversold zone. Once it returns back into neutral zone, trade is entered in respective direction.
Profit and loss target point (1000 points). Strategy uses same values for both target and loss limit.
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
Break even (after 400 points). To protect the profitable trade stop loss is moved to break even once the position reaches partial, defined profit
MAX open trades (30): Strategy allows holding more than one trade per direction at the same moment. We have used aggressive setting in test allowing up to 30 trades per direction.
Forex strategy rules
SELL

All alligator lines (in both) aligned according to downtrend (from slowest at the top to fastest at the bottom).
We will be looking for short CCI signal.
CCI rising above 100 value. Once it closes back below it, we enter the trade short on candle close.
Profit and loss target points: 1000 (100 pips).
Break even after: 40 pips
BUY

All alligator lines (in both) aligned according to uptrend (from slowest at the bottom to fastest at the top).
We will be looking for long CCI signal.
CCI falling below - 100 value. Once it closes back above it, we enter the trade long on candle close.
Profit and loss target points: 1000 (100 pips).
Break even after: 40 pips
Get MT4 expert advisor trading this forex strategy
For best results, use this forex strategy with one of our trusted forex brokers
(STP/ECN with MT4 bridge).
To win you must trade with broker on your side.
Disclaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.